Overseas inflow into China's onshore ETF market this year through July surged 146.3% from a year ago, rapidly closing the gap with Mainland investment flow into Hong Kong. ChinaAMC stands to capitalize on the trend.
The sustained rally and growing risk appetite in China's onshore equity market has drawn in surging portfolio inflow into the nation'sETF market, with inbound trading volume under the ETF Connect mechanism hitting a record high.
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Northbound trading into ETF listed in Shanghai and Shenzhen exchanges under ETF Connect hit 72.2 billion yuan ($10 billion) in July, the highest monthly level in 2025, beating that of March when a trading frenzy was sparked by DeepSeek's technological breakthrough and global capital's re-rating of China-themed stocks. The volume also beat that of southbound trading for the second month (June and July), according to Wind data.
Historically, southbound trading has been more active than the other way around, as Mainland China investors favors internet, consumer and biotech names listed in Hong Kong. Northbound trading lagged due to A-share's underperformance in the past few years, and international investors' less recognition of its stock names. By the end of July, aggregate turnover in southbound trading hit 804.2 billion yuan since the ETF Connect scheme kicked off in July 2022, 11.23% above that of northbound trading.
The trend has gradually shifted this year, however, as northbound turnover caught up and occasionally surpassed southbound turnover. That happened in January, June, and July, according to Wind.
Trading peaked during the February-March “DeepSeek Moment”, when turnover spiked to 63.2 bn and 64.2 bn yuan, respectively. Still, they were outranked by the buoyant market in Hong Kong, where turnover hit 85 and 99 bn yuan.
Overall, northbound turnover this year to date surged 146.3% year-on-year to reach 376.2 billion yuan, Trading value reached 83.94% of the southbound value, compared to 80.27% a year earlier.
Onshore ETF giants such as China Asset Management (referred asChinaAMC below) are well-positioned to benefit from the accelerated inflow into Mainland market.
Three years ago, when the ETF Connect program debuted, ten products from ChinaAMC were selected, among the 83 first batch ETFs eligible for northbound trading. Now, as the total eligible expanded to 248, the number of ChinaAMC's qualifying ETFs grew to 24, the largest among all Chinese asset managers, according to Wind.
Among ChinaAMC's 24 eligible ETFs, the one that tracks CSI Robotics Index drew in the largest net inflow among overseas investors during the Jan-July period, followed by the one that tracks CSI AI Index. In terms of existing holding, overseas investors hold most in STAR 50 ETF, trailed by F&B and Chip ETF.
“We stay positive on China's computing power supply chain and leading companies in technology industry, supported by Q2 earnings's validation and improved U.S.-China sentiment,” saidXu Meng, Executive Manager of Quantitative Investment,ChinaAMC.
Learn more about the ETF Connect scheme: https://en.chinaamc.com/enetf/index.html
About ChinaAMC
Founded in April, 1998, China Asset Management is one of the first mutual fund managers in China. Since its inception, ChinaAMC has led the asset management industry with more than two decades of track-record in product innovation. ChinaAMC offers multi-asset investment solutions and one-stop services to investors with various risk-return profiles.
As of June 30, 2025, ChinaAMC's total AUM exceeded RMB 3.03 trillion (US$423.5 billion), making it one of the largest asset managers in China.
ChinaAMC identifies its core strength as discovering, defining and managing assets, as it offers a balanced mix of asset classes, encompassing equity, fixed income, FOF, REITs, money market,etc. It has been the largest ETF manager in China for 20 consecutive years with an AUM of over RMB 750 billion.
Source: ChinaAMC and Wind. AUM includes subsidiaries. Data as of June 30, 2025. FX rate is sourced from PBoC
Disclaimer
Investment involves risk, including possible loss of principal. The information contained herein is for reference only and does not constitute an offer or invitation to anyone to invest in any funds and has not been prepared in connection with any such offer.
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SOURCE ChinaAMC
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